Q1)land has been bought 10 years ago as an investment in Palm Jumeirah. The original amount paid 2.4 Million for it. If it is sold for 3.4 Million, what was the annual return on investment?

Q2)What amount would Ann have to receive in 5 years time to make Ann indifferent between that amount and $10,000 in 40 years time? Assuming that the interest rate is 6% p.a.

Q3)The present value of a stream of two annual cash flows of $1001 beginning in one year's time, where the interest rate is 2% p.a. for the first year and 3% p.a. for the second year is how much ?

Q4)You invest $25,000 in a term deposit of 9 years and interest rate is currently 6% per annum. If the interest is compounded on a weekly basis, what is the value of the investment at the end of the Seven years?

Q5) $1000 to be received at the end of 8 years is worth how much today if there is no interest is being charged?

Q6)If you sell your shares for $124,755 that you bought 7 years ago for $9,000, what is the annual rate of return?

Q7)Your grandmother promises to give you $40000 in 11 years' time for your 27th birthday. If interest rates are 2% per annum, how much is that gift worth today?

Q8)You currently have $1015 available for investment for a 23 year period. At what interest rate should you invest this amount for it to be worth $6000 at maturity?

Answer rating: 100% (QA)

Q1 Original amount paid 24 million Selling price 34 million Holding period 10 year... View the full answer